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  "documentTitle": "Dexcom, Inc. (DXCM)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "presentationDate": "2019-03-21 00:00:00",
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  "notes": "Uses red callout boxes to highlight the contradiction between management's claims and the reality of the financial data.",
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      "kind": "callout",
      "text": "If \"general awareness\" drove accelerated growth in Q2, wouldn't transmitter sales grow in line with sensor sales? Why did sensor sales grow faster?",
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      "text": "Transmitter sales growth did not accelerate in Q3 despite the recognition of the $5M of deferred transmitter revenue. So accelerated sensor growth ahead of transmitter growth caused by legacy sensor stockpiling?",
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      "kind": "callout",
      "text": "We feel that the relative acceleration in sensor growth is much better explained by the fact that customers stockpiled legacy sensors ahead of the release of the more expensive G6, as our survey confirms.",
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      "text": "On the Q2 FY18 earnings call, management admitted that outsized sales growth in Q2 was largely driven by G5 sales rather than G6 sales...",
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      "kind": "quote",
      "text": "...We talked about this promotional program of G5 into G6... roughly $5 million or so that didn't come in in Q2. You normalize for that and you've got a growth rate in your transmitter business that's right back up in line...",
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      "text": "It comes back to general awareness... All of us are going to win together, and I think that's exactly what you just saw play out in Q2.",
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      "kind": "quote",
      "text": "\"It comes back to general awareness. I just think awareness in this marketplace is increasing significantly... All of us are going to win together, and I think that's exactly what you just saw play out in Q2.\" — Quentin Blackford, CFO, Dexcom; \"...We talked about this promotional program of G5 into G6. That played out in the quarter and there's still a bit of deferral that will come back in the back part of the year...\" — Quentin Blackford, CFO, Dexcom",
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      "kind": "source-note",
      "text": "Source: Dexcom FY18 Q3 10-Q",
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      "text": "Management Fails To Explain Divergence In Segment-Level Growth, Deflects Questions On Stockpiling",
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